Deciding to retire

[ownmytime]

Due to a reorganization at work I have the option to take early retirement.   I have 800,000 in retirement savings, a lovely (too large) paid for home (market value of 700K), no debt and will receive 70K year pension.   I have two school age children at home and have always wanted to be a stay at home mom but now that the opportunity is here I am coming up with all these reasons why I shouldn't retire. Anyone else go through this? Any recommendations? 

[BTDretire]

All these details just seems to good to be true.
About 99% of us here would say, I would have already retired.
$70,000 pension, Wow!!
 Good luck.
 

[tobitonic]

I'm guessing you've got a very well paying job, which probably means it's also a high status one. Would you be able to walk away from that and derive meaning from other things in life?

[arebelspy]

Due to a reorganization at work I have the option to take early retirement.   I have 800,000 in retirement savings, a lovely (too large) paid for home (market value of 700K), no debt and will receive 70K year pension.   I have two school age children at home and have always wanted to be a stay at home mom but now that the opportunity is here I am coming up with all these reasons why I shouldn't retire. Anyone else go through this? Any recommendations?

You missed the most important number: what is your annual spending?

If's it's less than 102k (70k pension + 32k from 4% WR of 800k), you should be good to go.

What are all these reasons you keep coming up with?

And yes, many people go through what you are now.  Fear is a common thing, and nothing to be ashamed of.  It's well working through your thoughts and emotions around the topic.  :)

[alsoknownasDean]

Jackpot!

Enjoy your retirement. :)

Sent from my LG-D855 using Tapatalk

[ownmytime]

     Yes.  I have a high-status and well-paying job (170K).  Our spending is 100K/year.  Thus, our expenses are right around the income I can expect to draw from pension and savings. 
       In the near-term I am really ready for a break from all the stress of the high-status, high demand  job (I have been working for 29 years with 10 of them in a high status, stress job and the other 19 climbing my way up the ladder), however, I worry that in a year or so I will miss it.   So there is fear of giving up that high status job.  I was talking with my 11 year old son about it last night and he said "Mom, if you retire now you will probably live longer because you will have less stress and isn't that a good reason to stop?"   The wisdom of children.
      Lots to think about.

[arebelspy]

If you miss it, go back.

[CATman]

The financials add up.

Pack it up and spend more time with those kids of yours. I don't have any kids, but I've never heard anyone say, "Man, I wish I didn't spend that much time with my children" You've got a golden ticket, you've worked hard, now kick off and start living. You'll go through a bit of an adjustment, but think how much better your life will be without all that stress.

[Cap_Scarlet]

     Yes.  I have a high-status and well-paying job (170K).  Our spending is 100K/year.  Thus, our expenses are right around the income I can expect to draw from pension and savings. 
       In the near-term I am really ready for a break from all the stress of the high-status, high demand  job (I have been working for 29 years with 10 of them in a high status, stress job and the other 19 climbing my way up the ladder), however, I worry that in a year or so I will miss it.   So there is fear of giving up that high status job.  I was talking with my 11 year old son about it last night and he said "Mom, if you retire now you will probably live longer because you will have less stress and isn't that a good reason to stop?"   The wisdom of children.
      Lots to think about.

What does your partner do (if you have one) and how do they feel about the decision?

Is the 70k gross or net? 

How stable is the company - are you sure they will be able to continue to pay the pension for the rest of your life?

Aside from looking after the children - how will you fill your time?

[Davids]

Because you mention your spending is $100K/yr I am concerned. Can you lower your expenses. Perhaps also consider selling your $700K home and moving into a smaller home and investing the difference?

[arebelspy]

You missed the most important number: what is your annual spending?

If's it's less than 102k (70k pension + 32k from 4% WR of 800k), you should be good to go.

Our spending is 100K/year.  Thus, our expenses are right around the income I can expect to draw from pension and savings. 

Okay, so your numbers barely cut it.  However, there may be a fair amount of flexibility in that 100k, which would help a lot.  It would probably be worth optimizing your expenses.

You say you're really ready for a break, so I'd take a break, and reevaluate.  You're on the edge, so if the job is not fulfilling you right now, a sabbatical (sanctioned or not) may be just the thing to provide clarity.

[Bateaux]

That house is the mill stone around your neck.  Sell it and get one for 200k in some wonderful place with cheap cost of living.   Invest the 500k and earn 20k at 4% withdrawal rate.   That yields 90k in perfectville USA living like royalty.

[AlwaysBeenASaver]

If you're confident about your spending calculations, I would say go for it.  Your spending it right at what you would be getting post-FIRE, but with with a pension of 70K even in worst case scenarios, you could most likely survive on the 70K if it came down to it. That can be your mental safety net.

[Sibley]

You're spending $100k a year, and you have a high stress job while also trying to be a mom. I've gotta think that you're paying for convenience, meaning that if you didn't have the job you'd be able to do all the stuff you're currently hiring out.

Things to think about:
-yard work
-cleaning
-laundry
-cooking
-errands
-grocery shopping
-child care

Take a look at your budget, and figure out how many of those things would go to zero or be cut significantly if you weren't working. That might change your math and make it a lot easier.

Combine that with potentially downsizing the house and freeing up money. If your expenses are cut in half, $50k a year is much easier to swing on your investments and pension than $100k.

Good luck!

[William Cannon]

How about taking the early retirement option, and taking some time off.  Then decide what you want to do.  You might miss your job, or you just might miss working.  You could take a job with less hours, less prestige, but with more personal satisfaction if that's possible.  Any interest in the non-profit sector?

Tapa

[Travis]

In the near-term I am really ready for a break from all the stress of the high-status, high demand job..."Mom, if you retire now you will probably live longer because you will have less stress and isn't that a good reason to stop?"

Mic drop.

I'm sure after spending some quality time with your family you'll miss the high-stress job a lot less.

[SwordGuy]

Take the deal.  If the money isn't enough, you can always cut wasteful spending, downsize the house, or work part time.

[scottish]

How's the business doing?   Several organizations (sigh 3 in a row) where I've worked have had ongoing reorganizations because the business wasn't doing well.    Two of these organizations were Nortel and BlackBerry.

If the business prospects aren't looking so good, you should take the early retirement package while it's available.   Otherwise you risk having your position disappear without the package.   In this case, hopefully your pension is segregated from the rest of the company's finances.

[pbkmaine]

Take the deal, downsize the house, and live a happy life.

[Al1961]

You said you were offered early retirement. What all does that entail?

Just access to a pension at an earlier age, perhaps waiving any actuarial adjustment to the payout? Is there a cash buy-out too? Any chance you could negotiate a severance?

Al